Finding Text
Program Name: ARP Grow Your Own (ALN #21.027, Project #232423-20231) Pass-through Entity: Michigan Department of Education Finding Type: Cash Management (Material Weakness) Criteria: Requests for cash reimbursements for the program should not occur before expenditures have been incurred. Amounts were requested before expenses were actually incurred. Condition: The Academy requested cash reimbursement in excess of expenditures for the program listed above. The Academy submitted reimbursement requests totaling $298,843 related to the June 30, 2025 year-end. The Academy only incurred $181,428 in expenditures charged to the grant code, creating cash requests in excess of expenditures. Questioned Costs: $117,415 Context: The Academy had requested cash reimbursement without first incurring the necessary expenditures. Cause/Effect: The Academy requested cash in excess of expenditures in the amount of $117,415. Recommendation: We recommend that the Academy has an additional responsible party who has knowledge of the grant review the transactions and any adjustments to the amounts charged to the grant before reimbursement requests are made. Views of Responsible Officials and Planned Corrective Action: Management acknowledges the deficiency. See corrective action plan.